Exploring the Ft. Lauderdale STR Market

Fort Lauderdale, Florida
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Exploring the Ft. Lauderdale STR Market

Isaiah Cortez
Investor · FL · Member since 2023 · 8 posts · 8 votes

Hello, BiggerPockets community! 

I'm currently exploring the Short-Term Rental (STR) market in Ft. Lauderdale and possibly the Pompano Beach area. I'm particularly drawn to the mix of year-round tourist demand, the beautiful beaches, and the proximity to major attractions.

That said, I’d love to hear your thoughts on how the market is performing these days. Are STRs in this area still delivering strong cash flow? Any specific neighborhoods you recommend looking into—or areas to avoid?

I’m also curious about local regulations for STRs. How strict are the licensing requirements, and are there any recent changes in city or county ordinances to keep in mind?

Any insights, tips, or recent experiences would be greatly appreciated as I plan my next move! Thank you in advance for sharing your knowledge. 🙏

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Chris Brady
Lender · Fort Lauderdale, FL · Member since 2021 · 11 posts · 12 votes
1y

Hi Isaiah, 

I am based in Fort Lauderdale and can speak to the local market directly.  

Cash flow has been hampered by an increase in cost of ownership recently, specifically insurance. When running your numbers, if purchasing a home that isn't new construction and less than $1MM, I would estimate 1% - 1.2% of the purchase price as your annual insurance premium. Additionally, FEMA updated the local flood maps here in July 2024 and much of the area now requires flood insurance. All told, cash flow will be a function of your down payment and your management of the property.

FL tourism continues to flourish.  In '23 the state set records for tourism revenues and visitors to the state, a hat tip to your point about year-round demand.  Both Fort Lauderdale and Pompano attract a lot of visitors.  Fort Lauderdale has higher purchase prices and nightly rates, but Pompano has had an influx of investment and continues to improve, specifically by the beach.  Major brands like Ritz Carlton and Waldorf Astoria are currently developing property there, where they have traditionally developed in Miami, Fort Laud, and Palm Beach. 

Both Fort Lauderdale and Pompano have fairly relaxed STR rules and regulations. The licenses are easy to attain and the cities have departments designated to STR. They are much less restrictive than other municipalities in South Florida that are actively trying to reduce the number of STRs.

Let me know if you'd like to talk further on the topic!  All the best!

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    1y

    Hey @Isaiah Cortez, here are the deets on STRs via the city - https://www.fortlauderdale.gov/government/departments-a-h/de...

    I don't have any real insights on the area, but do a search and you will find some details.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    Hey Isaiah!

    I am based in Tampa but have frequently explored that area over the years.  It is pricey and a little hard to make the numbers in my experience, but it is a vast area (S FL in general) so I am sure there are pockets where it makes sense.  Just run your numbers well and make sure you are in an area without prohibitions in place.  Good luck!

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  • Josh Ball
    Real Estate Agent · Louisiana · Member since 2017 · 214 posts · 146 votes
    1y

    Isaiah, I would suggest starting out with doing some research on some of the available platforms like AirDNA. That is my personal go to. It can be used to monitor markets, filter results based on lots of different criteria & even includes annual revenue numbers that you can work backwards to see how certain markets/properties are performing. Good luck on your search.

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  • Chris Brady
    Lender · Fort Lauderdale, FL · Member since 2021 · 11 posts · 12 votes
    1y

    Hi Isaiah, 

    I am based in Fort Lauderdale and can speak to the local market directly.  

    Cash flow has been hampered by an increase in cost of ownership recently, specifically insurance. When running your numbers, if purchasing a home that isn't new construction and less than $1MM, I would estimate 1% - 1.2% of the purchase price as your annual insurance premium. Additionally, FEMA updated the local flood maps here in July 2024 and much of the area now requires flood insurance. All told, cash flow will be a function of your down payment and your management of the property.

    FL tourism continues to flourish.  In '23 the state set records for tourism revenues and visitors to the state, a hat tip to your point about year-round demand.  Both Fort Lauderdale and Pompano attract a lot of visitors.  Fort Lauderdale has higher purchase prices and nightly rates, but Pompano has had an influx of investment and continues to improve, specifically by the beach.  Major brands like Ritz Carlton and Waldorf Astoria are currently developing property there, where they have traditionally developed in Miami, Fort Laud, and Palm Beach. 

    Both Fort Lauderdale and Pompano have fairly relaxed STR rules and regulations. The licenses are easy to attain and the cities have departments designated to STR. They are much less restrictive than other municipalities in South Florida that are actively trying to reduce the number of STRs.

    Let me know if you'd like to talk further on the topic!  All the best!

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